Saturday, 26 November 2011

Here is an update on the Gann cycles chart posted on Nov 5 and it turned out to be a good setup. Gann cycles are not a prediction....nobody knows what the market will do next...they provide a window where action can be taken if a reversal occurs...its up to the individual what reversal pattern is the trigger...risk tolerance,time-frame etc. On the daily swing chart we had a triple top...once that was confirmed it was a pretty strong signal to short the market but earlier reversals signals could also have been elected,with close stops.Gann's rule is that fast moves often come off triples and that is what we have seen

we also had a sell signal at the end of October http://chartramblings.blogspot.com/2011/10/well-we-got-our-sell-signal.html

here is a possible bullish option,the declining wedge,plus we are at natural gann support level,5400.Still we can probably wait for an inverted hammer like the the previous 3 bottoms before getting too excited....